INTRADAY Trading Strategy on NIFTY FUTURES (only)

#1
Intraday, Simplest Trading System ONLY NIFTY FUTURES.. :)

Hello friends,

After long time Im back in to Markets, Tradeji and Intraday Trading:clap:.

Would like to share a small and very effective trading strategy which I am following since last 1 month. Please note that this system works well only with NIFTY Futures ( though I havent tried anything else as I trade only in NIFTY Futures). I have not back-tested this system as I dont have enough data as of now. I would appreciate efforts by veteran members to convert this system in to AFL, which will benefit everyone out there.

Basic set up : 5 Minute NIFTY FUTURES Chart with 1 day backfill.
RSI : 7 period RSI below price chart (Signal line not required) with 75 (overbought) and 25(oversold) lines.
ATR : A 10 period ATR for stop loss.
Risk-Reward 1:1 or Follow trailing stop loss method.
Note : No fresh trade till 9:30 am or after 3:15 pm.


BUY Signal After a sharp sell off, when market enters oversold zone (i.e. RSI below 25 reading), stay tight & ready (BUT DO NOT ENTER in to the TRADE right now). I have seen RSI falling to single digit. Once Market is coming out of oversold on candle close basis (do not trade while candle is still forming), Buy above high of that candle after adding 2 points as filter. Stop loss will be 2x ATR . (if ATR is 8 then stop loss will be of 16 points) if 2x ATR is more then days low, you can keep stop loss as days low to save some bucks. Target will be at least 16 points. You can ride on with trailing stop loss method you chose to follow.

SELL Signal same way, after a sharp rally, when market exits overbought zone (75 reading) on closing basis, go short below low of closing candle (after deducting 2 filter points) with 2x ATR stop loss (or days high) for 1:1 Risk reward or trail your stop loss according to your own method.

Comments / Suggestions / Queries Welcome.

Regards,
Dipesh.
 

myamit

Well-Known Member
#2
Intraday, Simplest Trading System ONLY NIFTY FUTURES.. :)

Hello friends,

After long time Im back in to Markets, Tradeji and Intraday Trading:clap:.

Would like to share a small and very effective trading strategy which I am following since last 1 month. Please note that this system works well only with NIFTY Futures ( though I havent tried anything else as I trade only in NIFTY Futures). I have not back-tested this system as I dont have enough data as of now. I would appreciate efforts by veteran members to convert this system in to AFL, which will benefit everyone out there.

Basic set up : 5 Minute NIFTY FUTURES Chart with 1 day backfill.
RSI : 7 period RSI below price chart (Signal line not required) with 75 (overbought) and 25(oversold) lines.
ATR : A 10 period ATR for stop loss.
Risk-Reward 1:1 or Follow trailing stop loss method.
Note : No fresh trade till 9:30 am or after 3:15 pm.


BUY Signal After a sharp sell off, when market enters oversold zone (i.e. RSI below 25 reading), stay tight & ready (BUT DO NOT ENTER in to the TRADE right now). I have seen RSI falling to single digit. Once Market is coming out of oversold on candle close basis (do not trade while candle is still forming), Buy above high of that candle after adding 2 points as filter. Stop loss will be 2x ATR . (if ATR is 8 then stop loss will be of 16 points) if 2x ATR is more then days low, you can keep stop loss as days low to save some bucks. Target will be at least 16 points. You can ride on with trailing stop loss method you chose to follow.

SELL Signal same way, after a sharp rally, when market exits overbought zone (75 reading) on closing basis, go short below low of closing candle (after deducting 2 filter points) with 2x ATR stop loss (or days high) for 1:1 Risk reward or trail your stop loss according to your own method.

Comments / Suggestions / Queries Welcome.

Regards,
Dipesh.
Hello Dipesh,

Good post. Let me build an AFL & backtest results. I'll share data here for your review.

Regards,
 
#4
Intraday, Simplest Trading System ONLY NIFTY FUTURES.. :)

Hello friends,

After long time Im back in to Markets, Tradeji and Intraday Trading:clap:.

Would like to share a small and very effective trading strategy which I am following since last 1 month. Please note that this system works well only with NIFTY Futures ( though I havent tried anything else as I trade only in NIFTY Futures). I have not back-tested this system as I dont have enough data as of now. I would appreciate efforts by veteran members to convert this system in to AFL, which will benefit everyone out there.

Basic set up : 5 Minute NIFTY FUTURES Chart with 1 day backfill.
RSI : 7 period RSI below price chart (Signal line not required) with 75 (overbought) and 25(oversold) lines.
ATR : A 10 period ATR for stop loss.
Risk-Reward 1:1 or Follow trailing stop loss method.
Note : No fresh trade till 9:30 am or after 3:15 pm.


BUY Signal After a sharp sell off, when market enters oversold zone (i.e. RSI below 25 reading), stay tight & ready (BUT DO NOT ENTER in to the TRADE right now). I have seen RSI falling to single digit. Once Market is coming out of oversold on candle close basis (do not trade while candle is still forming), Buy above high of that candle after adding 2 points as filter. Stop loss will be 2x ATR . (if ATR is 8 then stop loss will be of 16 points) if 2x ATR is more then days low, you can keep stop loss as days low to save some bucks. Target will be at least 16 points. You can ride on with trailing stop loss method you chose to follow.

SELL Signal same way, after a sharp rally, when market exits overbought zone (75 reading) on closing basis, go short below low of closing candle (after deducting 2 filter points) with 2x ATR stop loss (or days high) for 1:1 Risk reward or trail your stop loss according to your own method.

Comments / Suggestions / Queries Welcome.

Regards,
Dipesh.

Firstly, thanks for sharing the system.

They say a picture is worth a thousand words. It would be nice if you can post some screenshots.
 

rkkarnani

Well-Known Member
#5
A small clarification sought:
You have mentioned : Note : No fresh trade till 9:30 am or after 3:15 pm.

As it is an intraday strategy, there will not be any Position open from overnight.... you probably mean : No trade till 9:30 and no fresh trade after 3:15.
Trade entered before 3:15 is carried till target or exit just before close!

Also when you say "Sharp sell off", can you elaborate this... do you have anything in mind to define it as a Sharp Sell off
or
any close below RSI 25 is good for taking a trade. Trade Long on the bars high + filter when RSI closes above 25!!

Thanks for inititing this thread!!
 
#8
Intraday, Simplest Trading System ONLY NIFTY FUTURES.. :)

Hello friends,

After long time Im back in to Markets, Tradeji and Intraday Trading:clap:.

Would like to share a small and very effective trading strategy which I am following since last 1 month. Please note that this system works well only with NIFTY Futures ( though I havent tried anything else as I trade only in NIFTY Futures). I have not back-tested this system as I dont have enough data as of now. I would appreciate efforts by veteran members to convert this system in to AFL, which will benefit everyone out there.

Basic set up : 5 Minute NIFTY FUTURES Chart with 1 day backfill.
RSI : 7 period RSI below price chart (Signal line not required) with 75 (overbought) and 25(oversold) lines.
ATR : A 10 period ATR for stop loss.
Risk-Reward 1:1 or Follow trailing stop loss method.
Note : No fresh trade till 9:30 am or after 3:15 pm.


BUY Signal After a sharp sell off, when market enters oversold zone (i.e. RSI below 25 reading), stay tight & ready (BUT DO NOT ENTER in to the TRADE right now). I have seen RSI falling to single digit. Once Market is coming out of oversold on candle close basis (do not trade while candle is still forming), Buy above high of that candle after adding 2 points as filter. Stop loss will be 2x ATR . (if ATR is 8 then stop loss will be of 16 points) if 2x ATR is more then days low, you can keep stop loss as days low to save some bucks. Target will be at least 16 points. You can ride on with trailing stop loss method you chose to follow.

SELL Signal same way, after a sharp rally, when market exits overbought zone (75 reading) on closing basis, go short below low of closing candle (after deducting 2 filter points) with 2x ATR stop loss (or days high) for 1:1 Risk reward or trail your stop loss according to your own method.

Comments / Suggestions / Queries Welcome.

Regards,
Dipesh.
Here is your 5 Min Data For Nifty from 2009 till today...

http://www.4shared.com/office/SpEY6VVU/Nifty.html

:cool:
 

suri112000

Well-Known Member
#10
Intraday, Simplest Trading System � ONLY NIFTY FUTURES.. :)

Hello friends,

After long time I�m back in to Markets, Tradeji and Intraday Trading:clap:.

Would like to share a small and very effective trading strategy which I am following since last 1 month. Please note that this system works well only with NIFTY Futures ( though I haven�t tried anything else as I trade only in NIFTY Futures). I have not back-tested this system as I don�t have enough data as of now. I would appreciate efforts by veteran members to convert this system in to AFL, which will benefit everyone out there.

Basic set up : 5 Minute NIFTY FUTURES Chart with 1 day backfill.
RSI : 7 period RSI below price chart (Signal line not required) with 75 (overbought) and 25(oversold) lines.
ATR : A 10 period ATR for stop loss.
Risk-Reward � 1:1 or Follow trailing stop loss method.
Note : No fresh trade till 9:30 am or after 3:15 pm.


BUY Signal � After a sharp sell off, when market enters oversold zone (i.e. RSI below 25 reading), stay tight & ready (BUT DO NOT ENTER in to the TRADE right now). I have seen RSI falling to single digit. Once Market is coming out of oversold on candle close basis (do not trade while candle is still forming), Buy above high of that candle after adding 2 points as filter. Stop loss will be 2x ATR . (if ATR is 8 then stop loss will be of 16 points) if 2x ATR is more then days low, you can keep stop loss as days low to save some bucks. Target will be at least 16 points. You can ride on with trailing stop loss method you chose to follow.

SELL Signal � same way, after a sharp rally, when market exits overbought zone (75 reading) on closing basis, go short below low of closing candle (after deducting 2 filter points) with 2x ATR stop loss (or days high) for 1:1 Risk reward or trail your stop loss according to your own method.

Comments / Suggestions / Queries Welcome.

Regards,
Dipesh.
people won't believe in simplest things. if a trader tweeks his trade management keeping the base as this system..........he can do wonders. Kudos to thread starter.:thumb: